Helsley v. Anderson

519 S.W.2d 130, 1975 Tex. App. LEXIS 2298
CourtCourt of Appeals of Texas
DecidedJanuary 9, 1975
Docket18478
StatusPublished
Cited by9 cases

This text of 519 S.W.2d 130 (Helsley v. Anderson) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helsley v. Anderson, 519 S.W.2d 130, 1975 Tex. App. LEXIS 2298 (Tex. Ct. App. 1975).

Opinion

CLAUDE WILLIAMS, Chief Justice.

A. N. Helsley brought this action against Robert L. Anderson seeking specific performance of a written contract to convey real property located in Collin County, Texas. The trial court, sitting without a jury, denied the relief sought and Helsley appeals. We reverse.

On May 28, 1971, Robert Anderson, as seller, and A. N. Helsley, as buyer, executed a written contract wherein Anderson agreed to convey to Helsley ten acres of land in Collin County, Texas, for the consideration of $23,000. In compliance with the contract Helsley deposited the sum of $1,000 as earnest money with’ the Plano Title Company. The contract provided: “[cjlosing date to be July 1, 1971.” The sale was not consummated on that date.

At all times during the relevant transaction Hody Spies acted as agent for Helsley and David Howard acted as agent for Anderson. In August 1971, a problem arose *132 concerning the nonavailability of water on the property in question and Spies advised Howard that because of this problem Hel-sley was not then prepared to close the sale. The record reveals that during a period of more than one year subsequent to August 1971, Spies, on behalf of Helsley, attempted to obtain a water supply so that the sale could be concluded. Howard, as agent for Anderson, was aware of Spies’ efforts in this regard. There is also testimony in the record that both Anderson and Helsley remained interested in closing the transaction following the date of closing indicated in the contract.

In April 1973, Helsley’s attorney contacted Anderson and advised him that Helsley was prepared to consummate the May 28, 1971, agreement. Anderson’s refusal to perform his obligation under the contract precipitated this action.

In denying Helsley’s request for specific performance the trial court found and concluded that (1) time was of the essence for the closing of the contract on July 1, 1971; (2) Helsley was not ready or willing to close the contract on July 1, 1971, and he, therefore, breached the agreement; and (3) Helsley was guilty of laches, in that he waited more than one year after the date set for closing of the contract before making any effective demand upon Anderson to close the same.

In his points five through seven inclusive, appellant Helsley argues that the trial court committed error in concluding that time was of the essence for closing the contract on July 1, 1971. We agree with appellant and sustain these points.

It is well settled that in an ordinary contract for the sale of land where the sale is to be consummated on a future day, time is not of the essence unless such an intention is clearly manifested. Johnson v. Portwood, 89 Tex. 235, 34 S.W. 596, 598 (1896); Gala Homes, Inc. v. Fritz, 393 S.W.2d 409, 412 (Tex.Civ.App.—Waco 1965, writ ref’d n. r. e.); Foster v. L.M.S. Dev. Co., 346 S.W.2d 387, 394 (Tex.Civ.App.—Dallas 1961, writ ref’d n. r. e.); Shields v. Dunlap, 174 S.W.2d 642, 645 (Tex.Civ.App.—Eastland 1943, no writ).

Although the contract itself does contain the handwritten words “[c] losing to be on July 1, 1971,” when we look to the record and evaluate the attendant circumstances which evidenced the parties’ intent, we cannot agree with the trial court’s conclusion that time was of the essence. Hel-sley testified that at his own insistence the date was specified in the contract solely because he held certificates of deposit which matured on July 1, 1971, and he was simply concerned with the fact that such date would be the earliest possible time that he could consummate the contract. He definitely denied that the date was inserted to indicate the latest possible time for performance. Moreover, the record clearly shows that subsequent to July 1, 1971, both Helsley and Anderson, and their respective representatives, were interested in closing the contract and continued to treat the agreement as remaining in effect. Following July 1, 1971, neither Anderson nor his representative made a demand upon Helsley, or his agent, to terminate the agreement. In the light of this record we conclude, and so hold, that the trial court erred in concluding that time was of the essence of the contract in question. Herzstein v. Echols, 517 S.W.2d 355 (Tex.Civ.App.—Dallas 1974, no writ). In any event the finding concerning time being of the essence is contrary to the great weight and preponderance of the evidence.

In his eighth point of error appellant contends that the trial court erred in granting a judgment denying him specific performance predicated upon the holding that Helsley had breached the contract. The trial court, in conclusion of law number five, stated that because Helsley did not close the contract on July 1, 1971, such inaction constituted a contractual breach. As we have previously held, time was not *133 of the essence in the contract in question, therefore, the court’s conclusion, being contingent upon the finding that time was of the essence, is erroneous.

Moreover, we hold that a finding of breach of contract is contrary to the great weight and preponderance of the evidence.

If time is not of the essence, the contract continues in effect so long as the vendor has made no tender of deed or demand upon the vendee, and the vendee has made no tender of the price or demand upon the vendor, unless, of course, it is barred by limitations. Upton v. Maurice, 34 S.W. 642, 645 (Tex.Civ.App.—1896, no writ). In this case neither party demanded performance until April 1973. Pursuant to the terms of the written agreement, after Helsley deposited the earnest money with the Plano Title Company, he was not required to take further action until a good and sufficient deed of conveyance was tendered by the seller Anderson. No such deed was ever tendered by Anderson and, therefore, Helsley was not required to pay the purchase price balance. While Hel-sley’s conduct may have reflected an intent on his part to refuse performance of his contractual obligations, there was no evidence that Helsley failed to take any action required of him. Helsley may have delayed in initiating the closing of the transaction because of his desire to obtain a water supply for the property but such delay was not, in itself, a breach of contract. Sterling v. Apple, 513 S.W.2d 255, 258 (Tex.Civ.App.—Houston [1st Dist.] 1974, writ pending).

Anderson argues that tender of performance by him is unnecessary because Helsley, in August 1971, indicated an unwillingness to consummate the transaction. However, the record reveals that subsequent to August 1971, both parties indicated an interest and intention to complete the transaction. Efforts were made by Hel-sley to arrange for an adequate water supply and Anderson knew of these efforts. Anderson indicated to his agent that he was interested in closing the transaction and made no offer to press a termination of the agreement. It is elementary that a promissor who repudiates his contractual obligation before the time he is required to perform may retract such repudiation by notifying the promisee that he intends to perform the contract.

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Bluebook (online)
519 S.W.2d 130, 1975 Tex. App. LEXIS 2298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helsley-v-anderson-texapp-1975.